1. PRESENTATION TO THE NCOP TRANSPORT, ROADS & PUBLIC WORKS
27 August 2008

2. CONTENTS Northern Cape Road Network Expenditure Trends MTEF Allocation
Expenditure Outcome for 2007/08
First Quarter Results
Challenges
Monitoring of Agencies and projects

3. Northern Cape Road Network
The province consist of the following road infrastructure.
Proclaimed Roads km
Paved Roads: km
Gravel roads: km
Unproclaimed roads
Estimated at km
The province is having 20,75% of the network of the country but only have 3.5% of the budget allocation for infrastructure 3

4. Unpaved Road Network
Only 1 per cent of the unpaved road network currently has a gravel thickness of 150mm or more, compared to 32 per cent in The proportion of the network with a gravel layer thickness of less than 50mm of gravel. In practice, a gravel layer thickness of 50 mm or less is considered to be ineffective as it is not possible to reshape the road with a grader with so little gravel available.
54% of the unpaved roads is in urgent need of re-gravelling which translates to kilometres.
To eradicate this back log would cost R5,8 billion or R1 billion per annum plus inflation over a period of 5 yrs. 4

5. Road Network Condition5

6. Spending for the 2007/08 financial year6

7. Capital Spending on Infrastructure7

8. First Quarter Expenditure per Programme8

9. 9

10. Spending on Conditional Grant
Total allocation for 2008/09 is R 305,019 million
Infrastructure R 280,925 m
Rates & Taxes R 24,094 m

11. Rates and taxes
The function was devolving to the province as from the 2008/09 financial year. The amount that was allocated was R24 million while the amount that was needed was R30 million resulting in a shortfall of R6 million.
The following might result in additional financial liabilities.
There are properties where the land still belongs to the municipality while the buildings belong to government. Once these properties is vested the arrear and the recurrent cost for rates and taxes need to be paid.
The department is continuously vesting properties as when it is found to be a provincial asset.
All new development of properties will require the province to allocate funds for rates and taxes which escalate at a rate of 10% while the budget increase with 5% per annum.

12. Mothibistad to cross junction of D3031 –
Scaling up of EPWP
The funding for this financial year is R64 million. The following projects are funded by the ring fenced funding: Projects under construction
Project is in construction at a cost of R8 m
Hotazel – Van zylsrus
80 jobs
Project is in construction at a cost of R20m 133 jobs
Uap Road
Project is in construction at a cost of R20 m
Mothibistad to cross junction of D3031 –
150 jobs.
Project is in construction at a cost of R21 million
Bulletrap Access Road
200 jobs
Project is in construction at a cost of R8 million.
Garies Circle road
155 jobs
Project is in construction at an cost of R2,7 m
N7 to Garies Hospital
23 jobs 12

13. Challenges Acute shortage of road building materials
Lack of adequate funding for roads impacts negatively on delivery of a good Road Network
Ever increasing road construction costs.
Many of the access Roads are still impassable and inaccessible
High Ratio of Gravel to Surfaced roads
The manner of allocation for funding to provinces
Shortage of technical skills 13

14. Monitoring of Agencies and projects
The department has formalized their relationship with the DM’s by signing five year service level agreements with them. It stipulates what is the reporting requirement in terms of finance and performance on a monthly basis.
We have made provision in our organisational structure for a unit to specifically monitor the districts.
Departmental officials attend monthly site progress meetings
Professional Engineering Consultants on site monitoring the projects
The department submit a detailed quarterly report to Provincial Treasury.
Specific report are submitted on progress with respect to social indicators such as BEE, local resources
Monthly in year monitoring reports are also submitted to the provincial treasury.

15. THANKS 15